Payroll Real Time Information

Payroll Real Time Information (often abbreviated as RTI) reporting with HM Revenue and Customs is compulsory if you are under the Pay As You Earn (PAYE) scheme.

Under the scheme, each time you make a salary payment you must report the income tax and national insurance contribution payable by your staff and your company before or on the day. You do this by submitting FPS form online.

If your company payroll is on monthly basis then you must submit FPS every month. However, if no salary was made in any months, you must submit the form called EPS stating zero payment was made.

Generally, your company is the employer thus has the responsibility to ensure correct income tax and national insurance contribution are deducted correctly from your staff. Subsequently, pay it over to HMRC.

One man company

PAYE payroll for a limited company, where the director is also the owner of the company. As long as your director intend to withdraw money from the company through salary and bonus payments, you must register for PAYE. Correspondingly, you must submit PAYE forms with HM Revenue and Customs. In this case, your director would be considered an employee of the company.

Payroll real time information software

There are many independent payroll software providers you may choose. Usually, purchase of the software comes with technical support. You may call them if you do not know how to use the software for Real time Information reporting.

Free payroll software

Furthermore, there are also free payroll software for small companies with no more than 10 staff. The Gov.UK website give a few recommendations.

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